CNBC’s Jim Cramer said Wednesday that SK Hynix’s blockbuster earnings proved artificial intelligence stocks can still rally in a market that has grown increasingly skeptical of the massive data center build-out.
The South Korean memory giant’s New York-listed shares surged more than 13% after it delivered better-than-expected results and an upbeat outlook
The report lifted other chipmakers, with Micron jumping almost 6%, Arm advancing 4% and AMD rising 3%. The rally stood out at a time when even strong earnings haven’t been enough to lift some AI-related stocks, as investors question whether the enormous spending on data centers will pay off. “SK Hynix put on a clinic last night about how you can get your stock to move higher,” the “Mad Money” host said. Cramer identified several factors that helped SK Hynix overcome Wall Street’s skepticism, starting with its low valuation.
The company trades at just four times 2027 earnings, reflecting doubts about whether the memory boom can last. That left room for the stock to rally if results exceeded expectations. And SK Hynix delivered.